Bill Text: HI HB807 | 2012 | Regular Session | Introduced
Bill Title: Income Tax; Withholding
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [HB807 Detail]
Download: Hawaii-2012-HB807-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
807 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE INCOME TAX.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to temporarily reduce the maximum income tax withholding amount allowed under state law.
The purpose of this Act is to increase the take home pay of taxpayers and, ultimately, to revitalize the local economy.
SECTION 2. Section 235-61, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:
"(c) For each withholding period (whether
weekly, biweekly, monthly, or otherwise) the amount of tax to be withheld under
this section shall be at a rate which, for the taxable year, will yield the tax
imposed by section 235-51 upon each employee's annual wage, as estimated from
the employee's current wage in any withholding period, but for the purposes of
this subsection of the rates provided by section 235-51 the maximum to be taken
into consideration shall be [eight] five per cent. The tax for
the taxable year shall be calculated upon the following assumptions:
(1) That the employee's annual wage, as estimated from the employee's current wage in the withholding period, will be the employee's sole income for the taxable year;
(2) That there will be no deductions therefrom in determining adjusted gross income;
(3) That in determining taxable income there shall be a standard deduction allowance which shall be an amount equal to one exemption (or more than one exemption if so prescribed by the director) unless (A) the taxpayer is married and the taxpayer's spouse is an employee receiving wages subject to withholding, or (B) the taxpayer has withholding exemption certificates in effect with respect to more than one employer. For the purposes of this section, any standard deduction allowance under this paragraph shall be treated as if it were denominated a withholding exemption;
(4) That in determining taxable income there also will be deducted the amount of exemptions and withholding allowances granted to the employee in the computation of taxable income, as shown by a certificate to be filed with the employer as provided by subsection (f); and
(5) If it appears from the certificate filed pursuant to subsection (f) that the employee, under section 235-93, is entitled to make a joint return, that the employee and the employee's spouse will so elect."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2011, and be repealed on June 30, 2013; provided that section 235-61(c), Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day before the effective date of this Act.
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INTRODUCED BY: |
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Report Title:
Income Tax; Withholding
Description:
Reduces the maximum income tax withholding amount allowed under state law.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
